It’s almost like those who don’t have a lot of money are willing to purchase an iPhone just so it seems like they can fit in with the demographics that they want to be in. This is considering the increasing share of e-commerce and changing consumer attitude towards online purchase. That will help them to continue reaching out to other demographics who may not choose the iPhone as their smartphone of choice with their first impression. Only 8% of households that are 65+ and make less than $30k per year have decided to invest into a smartphone. 10% of the total iPhones that have been sold all time were purchased in Q4 2013. The launch added a new iPhone model into Apple’s product mix just as lockdown restrictions had reached important markets, such as the USA. 1 out of every 2 households at this income level has at least one iPhone. When looking at the best iOS apps, five out of the top ten downloads are games, compared to just 2 out of the top ten Android downloads. ", 18 Exceptional Business Holiday Greeting Ideas, 13 Commitment Ceremony Invitation Wording Ideas, 14 Core Values of Amazon: Its Mission and Vision Statement, Is AliExpress Legit and Safe: 15 Tips for Buyers, How Does Zoom Make Money: Business Model Explained, A Look at Southwest Airlines Mission Statement: 10 Key Takeaways, Apple’s Mission Statement and Vision Statement Explained, How Does WhatsApp Make Money: Business Model & Revenue Explained, How Does Discord Make Money: Explanation of Business Model, Is Mercari Legit and Safe: 15 Tips for Buyers and Sellers, NEO PI-R Explained: Neuroticism vs Extraversion vs Openness vs Agreeableness vs Conscientiousness, 100 Powerful Gratitude Affirmations to Fill You with Joy. People aged 25-34 are the most likely to own an iPhone, followed by the 18-24 age group. With larger screens and more intuitive features, when combined with the iOS 8, it is expected to be the fastest, most user friendly phone that this popular brand has created. Apple actually has a greater share of the tablet market with their iPad, at 74% of total US tablet sales, but their average revenues per quarter from this product are just 25% of the iPhone. Consequently, the manufacturers of Smartphone have faced the challenge of continuously fulfilling the dynamic needs of their target customers. The smartphone market was valued at USD 714.96 billion in 2019 and is expected to reach USD 1351.8 billion by 2025, at a CAGR of 11.2% over the forecast period 2020 … The only country where Apple truly dominates the market is in the US. The fastest growing purchasing demographic in smartphones today is the under $30k salary group and 90% of them are seeking to purchase a smartphone. E-commerce portals like Amazon among others attract end-users with special discounts on smartphones and created an online buying culture. Use your answers to the questions above to help you identify these demographics. The real question is this: who does Apple target as their primary customer for the iPhone? "Furthermore, the new smartphone generation has brought new lifestyle products to the market, which are definitely interesting for Adidas Originals target group," she said. Caucasians and Hispanics are the most likely to own an iPhone, although their ownership rates with Android phones is about equal. Demographic segmentation allows you to get more specific with your marketing strategies. The solitude age group is 22-55. For instance, in April 2020, Apple launched the iPhone SE. Optimize your marketing strategies. Further, the share might be lost to other categories such as fashion and fast-moving consumer goods (FMCG), home products among others, in regions with high smartphone penetrations. Compare this to Q3 2007 when only 270k iPhones were sold and the growth is phenomenal. That’s ultimately the goal that Apple has in marketing their smartphone. If 85% of your clients range from 20-35 years old, this is the segment you’re going to target. Demographic segmentation is extremely important to all marketing departments since the data is easily available and does drastically affect buying patterns. Apple needs to figure out a way to market new products to the lower income levels in order to reduce their growing revenue gaps that are creeping into their budget. Posted in Market Research, Uncategorized Tagged American Marketing Association Tampa Bay Chapter, targeting customers, understanding demographics Smartphones, with strong hardware capabilities, extensive mobile operating systems, facilitating wider software applications, internet, and multimedia functionality (music, videos, and gaming), alongside core phone functions such as voice calls and text messaging, are considered in the scope. From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors, 40 Enticing iPhone Target Market Demographics, 20 Cell Phone Repair Industry Statistics and Trends, Apple's Mission Statement and Vision Statement Explained, 23 Headphone Industry Statistics and Trends, "From Disabled and $500k in Debt to a Pro Blogger with 5 Million Monthly Visitors. When you start digging into the personalities that are in each demographic, you begin to see some clear definitions toward who prefers Apple and who does not. The primary vendor Huawei Technologies Co., Ltd, shipped 55.8 million units in Q2/2020 and surpassed Samsung, which shipped 54.3 million units in Q2/2020. The target … of people say smartphones help them feel more confident and prepared. Most of these players keep launching new models with small technology changes such as battery power, camera configuration and/processor. On the other hand, 42% of those households will choose to own an Android phone. The phone comes with a 6.53-inch touchscreen display with a resolution of 1080 pixels by 2340 pixels at a PPI of 394 pixels per inch. Samsung Market Demographics. With around 50% of smartphone penetration, on average, across regions, the replacement cycle is lengthening, which prompts the decline of the unit sales, especially in regions such as U.S., and China among others. Apple has a 15.3% market share of smartphone vendors and the global market share is virtually identical at 15.6%. Smartphones Market - Growth, Trends, and Forecasts (2020 - 2025). And, of course, age is one of the most significant factors to consider. Part 1: Demographics 1. Asia leads the smartphone market both in terms of production and sales as well. For OEMs like Realme, Vivo, and Xiaomi, which focus on this market, the pandemic and governmental issues contributed to a problematic Q2/2020. Last month, smartphones passed the number of feature phones on the market, with the worldwide smartphone market growth at 42.5 percent year over year in Q1 2012. To understand key trends, Download Sample Report. Women are more likely to own an iPhone than men. This explorative … The Smartphones Market is segmented by Operating System (Android, iOS, Windows), Distribution Channel (OEM, Retailer, e-Commerce), Price Range (Premium Phones (USD 400 and above), Mid-range Phones, Budged Phones), and Geography. Samsung’s target audience are people from age 15 to 45 who follow the latest technology trends. Teenagers to early adults (age 14 ‘ 25) ‘ This age group of Samsung product consumers is usually Samsung’s smartphone target customers as they are mostly technology savvy. To change this stigma, a good low-end iPhone that is brand new could dramatically change the mobile market in the US and around the world. In August 2020 - Xiaomi's launched Redmi 9 Prime. Drama and comedy is the preference of the typical iOS user, while Android users tend to prefer action or horror movies. Report scope can be customized per your requirements. Huawei overtook Samsung to become the smartphone market leader by share of units shipped during the Q2 2020, accounting for 20 percent of the overall market. China has the highest number of smartphone users – more than 782 million. As a second example, you could … Despite this fact, Applies average quarterly revenue on iPhones alone exceeds $26 billion. The fastest growing purchasing demographic in smartphones today is the under $30k salary group and 90% of them are seeking to purchase a smartphone. Maybe a better question to ask would be who isn’t a target demographic for the Apple iPhone. Android users are fatalistic, sad, and looking for some sort of escape and this is something that Apple could tap into with the right plan. According to Philip Kotler, Marketing Professor at the Kellogg School of Management at Northwestern University, the mass market has fractured into a plethora of micro-markets, each with its own profile and buying criteria. Spend Your Marketing … With over 1.2 million apps at a global annual revenue of $1.7 billion, it could be said that everyone is a target for Apple if the conditions are right. Their target demographics are only growing by 4% in a year-over-year comparison, compared to the 42% growth rates seen at the under $30k salary demographic. While companies have been increasing their revenues by launching new variant phones with increased frequency, the maturity state in a few regions might be challenging for their revenues. The Trends of Apple’s Target Market Demographics. Why does demographic data matter? As Apple transforms into a luxury brand, it will either do one of two things: shift the demographics into even wealthier areas where it becomes an exclusive brand OR build up desire within the lower income brands because it provides someone making less than $30k a way to be equal with someone who makes $150k. It targets a very specific demographic: consumers who want to pay as little as possible for a smartphone. Apple users tend to like living larger than life and pursue their dreams of career and happiness. Apple took 65% of the demographic of households who make $100k per year or more in 2013. The trend isn’t just about device generations. For example, a car business might identify customers who are interested in keeping the … There's everything from the … There's so much about Samsung's soon-to-be-released foldable phone that's just so, well, far-out and wildly different from everything else on the market today. The older someone is, the more likely they are to own an iPhone over an Android if they choose to own a smartphone. But nowadays the … On the whole, different … Grab that must-have cell phone along with the … There is certainly a rich vs. poor feeling to the target audience of Apple. The smartphone market was valued at USD 714.96 billion in 2019 and is expected to reach USD 1351.8 billion by 2025, at a CAGR of 11.2% over the forecast period 2020 - 2025. It helps clarify your vision, have more direction with future advertising plans, and optimize your resources, time, and budget. Demographic information is key to the success of your business. We know it’s exciting to own the latest smartphones on the market, and Target adds to the excitement with amazing online deals and discounts. "Adidas Originals has always been … However, 5G handsets and foldable phones are likely to provide them with new opportunities. Click here. Why Knowing Your Target Market Is Important. Every year since 2011, 10% of households in the United States choose to become smartphone owners for the first time. Example of Target Market Analysis. Component suppliers are ramping up their production to support the efforts of smartphone makers. The online sale of smartphones has been further led by the Holiday shopping culture across regions. Your stereotypical views might be wrong: Millennials might be digital natives, but it’s Gen-Xers who … 82.2% of the people in … Younger people tend to have less income, which means they typically prefer Android because it is a more affordable platform. This new platform maximizes the power of 5G with revved up performance to deliver faster and more efficient on-device processing with sharper imagery through improved graphics rendering. Samsung mobiles target a broad range of customers from different age groups, different social status, and different lifestyles. © 2020. 1, They target youngsters, middle-aged as well as old age … Your target audience needs to be a specified group of people that share certain demographics and interests. Market segmentation is one of the oldest marketing trick in the books. While customer segmentation for mobile services is typically based on demographics and reported use, smartphone measurement software enables to add directly observed user behavior. On the other hand, 77% of households in the 18-29 age demographic who make less than $30k will own a smartphone. Many businesses use Apple products because they have a higher quality that makes them incredibly useful and reliable. This means the company is expanding 5G across its product line to make 5G accessible to over 2 billion smartphone users. Psychographic segmentation splits up a sales market of a business based on such things as the social class, lifestyle choices, personality traits, tastes, attitudes, and the opinions of its customers. That’s why changing the focus of the iPhone in some key areas, such as productivity, could create a tremendous advantage that could make sales skyrocket. Only 3 out of the Top 40 downloads for the iOS are utility apps, whereas 9 of the Top 40 Android apps are utilities. Students at any level, in fact, are iPhone target demographics because the use of an Apple product is a bit of a status symbol. Th… The Galaxy Z Flip 5G is the first device in Samsung’s Galaxy line-up to feature the Qualcomm® Snapdragon™ 865 Plus 5G Mobile Platform. Globally, the only brands that Apple dominates are the ones that aren’t Android related. Here are some of the best reasons why demographics matter. Increased consumer spending across regions has driven the sales of Smartphone markers for years. Those who make more than $150k as a household are primary targets. There Were 1.8 Billion Global Digital Buyers in 2018 ()As of writing, there are 7.7 billion people in the World.. That means 21.55 percent of the World’s population … For instance, at the IFA electronics show in Berlin, Qualcomm reported that its partners are developing over 150 designs using its 5G processors. The answer to that question would be the lower income African American community. The usual target age group of customers range from the 20s to 50s or even older, as long as the person has the ability to purchase and use the products that Samsung has to offer in the market. After all, you don’t just own a smartphone. Android users might have less education overall and lower incomes, but they are also more pragmatic and tech-savvy. As technology increases and more tech jobs become available, unless something changes from where it is today, Apple might just find itself losing their market share in the near future. It is pretty clear that Apple is targeting the wealthier demographics in the United States and then trying to market their older products to cheaper price points around the world, but this might end up being a mistake. The Samsung Galaxy On5, for instance, is a sub-$100 Android smartphone released in 2015. Apple might choose to keep things as status quo, however, because they currently maintain over 50% of smartphone usage in the US and Canada, which is above their actual market share for the iPhone. So why wait? Otherwise, your marketing strategy is basically just a stab in the dark. In 2013, 33% of Apple’s sales went to households that make at least $100k per year. Work gets finished effectively and there are more communication options available. With its ability to listen to playlists, access social networks, and other socialization apps and features that are readily available, even the good camera in the iPhone makes it a tempting purchase. A sample target market profile focusing on demographics might read, "Male teens with parents who are college-educated and have incomes above $50,000." Smartphone Marketing: Target Market Essay The past few years have seen an unprecedented rise in the usage and manufacture of Smartphone technology around the world. They’re still making billions per year, of course, which is a pretty amazing statistic in itself, but that trend is waning more dramatically every year. Despite facing sanctions from the US government that are now entering their second year, Huawei has been able to mitigate impacts on its international business enough to compete with Samsung and finally claim the global top spot. To understand geography trends, Download Sample Report. College students are one of the primary target demographics for Apple as they typically have more disposable income and a need for the technology. Nearly 700 million iOS devices have been sold since 2007, accounting for more than half of all people who have access to the internet at any given time. You own an iPhone! Google/Heart+Mind Strategies, U.S., “Getting Things Done on Mobile,” n=1,847, A18+ smartphone … Because of their popularity, another demographic that is generally overlooked are mobile phone carriers, who often supplement the purchasing price of the phone with an extended contract. Apple does have three solid shopping apps in GroupOn, Target Cartwheel, and Black Friday, but Android dominates with everyday shopping environments like eBay and Amazon. However, due to the outbreak of COVID-19, smartphone shipments saw a declining stage as countries are still dealing with the pandemic. Apple users tend to prefer alternative and indie music over the classic rock, metal, and country of Android users. 500 million of these devices have been iPhones. We are always looking to hire talented individuals with equal and extraordinary proportions of industry expertise, problem solving ability and inclination. There are 4 type of Market segmentation which are most commonly used. Although they do not dominate the lower tiers of income demographics, Apple does consistently lead in overall brand share, which means more households have more than one iPhone at the higher income bracket. In July 2020 - Samsung Electronics introduced the Galaxy Z Flip 5G. Since 2009, Android market shares have increased dramatically while Apple shares have remained relatively the same. Use Demographics to Understand Your Target Market (All Business) Know Your Target Market (Entrepreneur) Related Posts: Leveraging Trends. Keep launching new models with small technology changes such as Samsung, Huawei, sold. 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